Europe: the Third Way/Die Neue Mitte
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FRIEDRICH EBERT FOUNDATION SOUTH AFRICA OFFICE 34 Bompas Road, Dunkeld West, Johannesburg P.O.Box 412664, Craighall 2024 Phone: (**27)-11-447-7455/2232 Fax: (**27)-11-788-5840 e-mail: [email protected] WORKING DOCUMENTS No. 2 Europe: The Third Way/Die Neue Mitte by Tony Blair and Gerhard Schroeder June 1998 Introduction Social democrats are in government in almost all the countries of the Union. Social democracy has found new acceptance – but only because, while retaining its traditional values, it has begun in a credible way to renew its ideas and modernise its programmes. It has also found new acceptance because it stands not only for social justice but also for economic dynamism and the unleashing of creativity and innovation. The trademark of this approach is the New Centre in Germany and the Third Way in the United Kingdom. Other social democrats choose other terms that suit their own national cultures. But though the language and the institutions may differ, the motivation is everywhere the same. Most people have long since abandoned the world view represented by the dogmas of left and right. Social democrats must be able to speak to those people. Fairness and social justice, liberty and equality of opportunity, solidarity and responsibility to others – these values are timeless. Social democracy will never sacrifice them. To make these values relevant to today’s world requires realistic and forward-looking policies capable of meeting the challenges of the 21st century. Modernisation is about adapting to conditions that have objectively changed, and not reacting to polls. Similarly, we need to apply our politics within a new economic framework, modernised for today, where government does all it can to support enterprise but never believes it is a substitute for enterprise. The essential function of markets must be complemented and improved by political action, not hampered by it. We support a market economy, not a market society. We share a common destiny within the European Union. We face the same challenges – to promote employment and prosperity, to offer every individual the opportunity to fulfil their unique potential, to combat social exclusion and poverty, to reconcile material progress with environmental sustainability and our responsibility to future generations, to tackle common problems that threaten the cohesion of society such as crime and drugs, and to make Europe a more effective force for good in the world. We need to strengthen our policies by benchmarking our experiences in Britain and Germany, but also with like-minded counterparts in Europe and the rest of the world. We must learn from each other and measure our own performance against best practice and experience in other countries. With this appeal, we invite other European social democratic governments who share our modernising aims to join us in this enterprise. I. Learning from experience Although both parties can be proud of our historic achievements, today we must develop realistic and feasible answers to new challenges confronting our societies and economies. This requires adherence to our values but also a willingness to change our old approaches and traditional policy instruments. In the past: 2 - The promotion of social justice was sometimes confused with the imposition of equality of outcome. The result was a neglect of the importance of rewarding effort and responsibility, and the association of social democracy with conformity and mediocrity rather than the celebration of creativity, diversity and excellence. Work was burdened with ever higher costs. - The means of achieving social justice became identified with ever higher levels of public spending regardless of what they achieved or the impact of the taxes required to fund it on competitiveness, employment and living standards. Decent public services are a vital concern for social democrats, but social conscience cannot be measured by the level of public expenditure. The real test for society is how effectively this expenditure is used and how much it enables people to help themselves. - The belief that the state should address damaging market failures all too often led to a disproportionate expansion of the government’s reach and the bureaucracy that went with it. The balance between the individual and the collective was distorted. Values that are important to citizens, such as personal achievement and success, entrepreneurial spirit, individual responsibility and community spirit, were too often subordinated to universal social safeguards. - Too often rights were elevated above responsibilities, but the responsibility of the individual to his or her family, neighbourhood and society cannot be offloaded on to the state. lf the concept of mutual obligation is forgotten, this results in a decline in community spirit, lack of responsibility towards neighbours, rising crime and vandalism, and a legal system that cannot cope. - The ability of national governments to fine-tune the economy in order to secure growth and jobs has been exaggerated. The importance of individual and business enterprise to the creation of wealth has been undervalued. The weaknesses of markets have been overstated and their strengths underestimated. II. New programmes for changed realities Ideas of what is ‘left-wing’ should never become an ideological straitjacket. The politics of the New Centre and Third Way is about addressing the concerns of people who live and cope with societies undergoing rapid change – both winners and losers. In this newly emerging world people want politicians who approach issues without ideological preconceptions and who, applying their values and principles, search for practical solutions to their problems through honest well-constructed and pragmatic policies. Voters who in their daily lives have to display initiative and adaptability in the face of economic and social change expect the same from their governments and their politicians. - In a world of ever more rapid globalisation and scientific changes we need to create the conditions in which existing businesses can prosper and adapt, and new businesses can be set up and grow. 3 - New technologies radically change the nature of work and internationalise the organisation of production. With one hand they de-skill and make some businesses obsolete, with another they create new business and vocational opportunities. The most important task of modernisation is to invest in human capital: to make the individual and businesses fit for the knowledge-based economy of the future. - Having the same job for life is a thing of the past. Social democrats must accommodate the growing demands for flexibility – and at the same time maintain minimum social standards, help families to cope with change and open up fresh opportunities for those who are unable to keep pace. - We face an increasing challenge in reconciling environmental responsibility towards future generations with material progress for society at large. We must marry environmental responsibility with a modern market-based approach. In environmental protection, the most modern technologies consume fewer resources, open up new markets and create new jobs. - Public expenditure as a proportion of national income has more or less reached the limits of acceptability. Constraints on ‘tax and spend’ force radical modernisation of the public sector and reform of public services to achieve better value for money. The public sector must actually serve the citizen: we do not hesitate to promote the concepts of efficiency, competition and high performance. - Social security systems need to adapt to changes in life expectancy, family structures and the role of women. Social democrats need to find ways of combating the ever more pressing problems of crime, social disintegration and drug abuse. We need to take the lead in shaping a society with equal rights for women and men. - Crime is a vital political issue for modern social democrats. We consider safety on the street to be a civil right. A policy to make cities worth living in fosters community spirit, creates new jobs and makes residential areas safer. - Poverty remains a central concern, especially among families with children. We need specific measures for those who are most threatened by marginalisation and social exclusion. This also requires a modern approach to government: - The state should not row, but steer: not so much control, as challenge. Solutions to problems must be joined up. - Within the public sector bureaucracy at all levels must be reduced, performance targets and objectives formulated, the quality of public services rigorously monitored, and bad performance rooted out. - Modern social democrats solve problems where they can best be solved. Some problems can now only be tackled at European level: others, such as the recent financial crises, require increased international co-operation. But, as a general principle, power should be devolved to the lowest possible level. 4 For the new politics to succeed, it must promote a go-ahead mentality and a new entrepreneurial spirit at all levels of society. That requires: - a competent and well-trained workforce eager and ready to take on new responsibilities - a social security system that opens up new opportunities and encourages initiative, creativity and readiness to take on new challenges - a positive climate for entrepreneurial independence and initiative. Small businesses must become easier to set up and better able to survive - we want a society which celebrates successful